New Delhi: Silver is likely to become expensive in the coming days globally, as investors have gone gung-ho over the white metal in the last two months, according
to a latest report by an industry body.
"Investment has surged this year and is expected to
drive silver prices higher, with the USD 20-per ounce level
likely to be breached in the short-term," global precious
metals consultancy GFMS Ltd said today. In rupee terms, silver
would cost about Rs 31,250 a kg in the coming days, it added.
At present, silver prices are ruling at USD 18.57 per
ounce at the London Metal Exchange, while it is quoting Rs
28,700 per kg in the local market.
"Since September, there has been a robust expansion in
investors’ long positions in all investment arenas" as white
metal has benefited from gold's strength and weaker US dollar,
GFMS noted.
The early part of 2009 was dominated by demand for
physical metal and ETFs ((exchange traded funds), as investors
sought refuge in silver when fears over counter-party risks
and the financial system remained rampant, it said.
Globally, the January-October period saw a 3,110 tonne
rise in ETF holdings, while there was an increase of 5,306
tonne in investors' net long positions in Comex futures, the
report said.
Besides, investors’ bullion stocks have also increased
substantially so far this year on a net basis, it added.
Bureau Report
First Published: Friday, November 20, 2009, 14:36